Urban Exposure is providing an £83.3m (€92.8m) loan to Strawberry Star Group to help fund a residential development in the east of England.

The UK residential development finance provider said it will provide the senior development finance facility to the London-based property company to fund the development of LU2ON, a 6.8 acre site previously occupied by Vauxhall Motors.

The site is situated just a two-minute walk from Luton Airport Parkway train station.

The loan, which completed in November, formed part of the £522m of new loans Urban Exposure completed between May and the year-end 2018.

The initial funding will finance the construction of residential phase 1, consisting of 400 units, including suites, one- and two-bedroom apartments (78 of which are affordable housing), the initial ground works for residential phase 2, and a public piazza.

The forecast gross development value for phase 1 is expected to be £94.6m.

Randeesh Sandhu, the CEO of Urban Exposure, said: “This development will be hugely beneficial for the local community and reinforces our focus on the provision of core housing for first-time buyers and young professionals.”

Kekul Shah, a director in charge of capital at Strawberry Star, said: “LU2ON is our first major foray into the London commuter belt to offer the UK capital’s lifestyle in Luton at prices achievable for buyers – especially first-time buyers, young families and commuting professionals.”